According to Craig McNaughton, the area director for Lloyds TSB Commercial, asset refinancingis becoming an increasingly viable option for small businesses in the UK, and in particular engineering re-finance and printing re-finance. Thanks to the stabilisation of...

Coach and Bus Re-finance

How does coach and bus re-finance work?

Coach and bus re-finance lenders identify the amount of re-finance that is available for a business by calculating the total 'stress' (forced-sale) value of the company's assets. These asset lenders can provide quick cash, which will be secured against the assets of the business.

Lenders confirm how much re-financing a business can receive through a fast, free desktop valuation of its assets, which will rarely require an analysis of the business's working assets. Institutions like banks are rarely concerned about the impact of re-finance on their risk position; they may even prefer to limit their exposure to non-asset capital such as overdraft facilities.

The higher the interest rate, the greater the perceived risk to the lender, although the long term rewards of coach and bus re-financing from a business's point of view will supersede the costs, particularly when there is such a strong business motive for the borrowing in the first place.

Fast cash from coach and bus re-financing

One of the main benefits of coach and bus refinancing is that businesses can receive funding in just days, rather than weeks or months. Loan periods last as long as 5 years, although business owners or Directors are almost always required to provide an unsupported guarantee in the first instance.

Businesses may wish to seek advice and support from their existing financial partners such as the Relationship Manager of their financial institution before proceeding with coach and bus re-financing. Many financial partners may be reluctant to offer support, however, if they have determined that the owners of these businesses are already self-funding their assets.

To understand how much capital you could raise from your own business assets contact us today.

Enquire today

We can deliver a free desktop valuation of your tangible business assets which may determine how much cash you can raise for your business.

All we will require is a list of your business assets including:

MakeModelDescriptionAgeMiles/hours workedCurrent estimated value

For a free initial consultation please send us your details and we will contact you for a chat.

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